Event Catering: Let Us Eatertain You!

 
Wherever you go in Europe, the event catering market is not only booming but also characterised by a diverse spectrum of players: big and small, and covering the spectrum from event specialists, hotels and restaurants to contract caterers. The growing demand is driven by the increasing use of sports stadiums as event venues. Additionally, events are the preferred way of achieving communication targets for many companies. Decisive for success are individual concepts, full service packages, top locations and a high entertainment factor – for F&B and all other aspects. The business is dominated by highly complex structures and big operational challenges.

A pan-European overview – Part 1

 

 
UK/Ireland catering market in the UK and Ireland has been transformed in the past ten years by large-scale change at premier soccer venues. The UK’s pre-eminent spectator sport hit a low point by the early 1990s, with dwindling match attendances made worse by outmoded and in some cases dangerous venues. Help from enthusiastic investors, notably from North America and Asia (to say nothing of Russian billionaires), have since helped rectify deficient stadia and widen audience demographics to include more women and families. At the same time, increased sponsor and media interest has boosted stadia as attractive all-yearround venues for corporate hospitality, motivational and training events. A number of major soccer clubs have continued to extend catering capability as well as spectator capacity in the past 10 years. These, with maximum single banquet potential in brackets, include Manchester United (1,200); Chelsea (1,000 plus 274 hotel rooms); Bolton Wanderers Reebok Stadium (1,500 plus 125 hotel rooms); Newcastle United (1,000); Coventry Ricoh Arena (900 plus 69 hotel rooms); Manchester City (700) and Southampton (500). In parallel have been big developments at national arenas, notably the 74,500 seat, retractable roof Millennium Stadium built in the Welsh capital Cardiff in 1998 and, over in the Republic of Ireland, the 82,300 seat Croke Park Stadium in Dublin, the final phase of which was completed in 2004. It now boasts one of Europe’s largest stadium event centres, with over 5000 sq m of conference and exhibition space, and has a 232 bedroom hotel directly opposite.
 

 
Both these venues are, however, now dwarfed by the 90,000 seat Wembley Stadium just opened after lengthy construction delays at a cost of over GBP800 m in North London. Its first major fixture – the Football Association Cup Final – is in May and there are expected to be 30 major events per year with refreshments needed for approximately 2.1 m visitors, including 500,000 restaurant quality meals for corporate guests and members. Replacing the existing ‘home of English football’ with a spectacular single arch structure and multi-function roof, the new Wembley is notable for the ambitious scale of both its matchday refreshment – with over 680 service points, compared to 152 previously – and its banqueting area focused on four giant restaurants (up to 1,900, split across two floors, in the largest and 1,300-1,500 in the others).
 

 
The scale of total foodservice investment, and adverse effects on revenue by delays in opening the stadium, have yet to be revealed but the Wembley contract is significant in being awarded to a single company with no previous involvement in European foodservice. All catering, from matchday fast-food and casual dining to large scale banquets, is in the hands of Delaware North Companies (DNC), a US family business founded in 1915 which provides foodservice at more than 50 large sporting venues and entertainment complexes across the USA, Australia, New Zealand and Canada. It has negotiated a 25-year contract at Wembley, including a ‘significant’ upfront financial contribution.
 

 

 
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Part II: With a Taste for Luxury

 

 
Event catering – one of the fastest growing segments in Europe. The trend towards turning everyday occurrences into special occasions and the growing desire of many people to ‘buy’ collective and positive experiences rather than material goods have resulted in a flourishing business environment for party-service players. The big names are operating on an increasingly international scale. However, many smaller companies are becoming more professional and developing into all-round service providers. After all, the decisive factors for success include not only great F&B but also a harmonious overall experience with a programme of entertainment at an extraordinary location. Part 2 of our European survey.
 

 

 
Germany
 
Event catering in Germany is a massively booming business. There was a very significant boost to its development in 2006 – firstly because of the megaevent that was the FIFA World Cup, andsecondly because of a distinct improvement in the domestic business climate of the most populous national economy in Central Europe. So the twelve leading event-catering companies in Germany alone were able to increase their sales more than 40% to €468.8 m last year (including stadiums). The undisputed leader in the field of event catering in Germany is Käfer from Munich. The multi-platform brand includes up-market food and delicatessen operations, event catering, fine-dining restaurants, the Munich Oktoberfest etc. Their turnover for 2006 was more than €50 m in event catering alone. (€96 m for restaurants and catering together and €135 m in total, including retail operations). Michael Käfer, company boss since 1995, caters worldwide and has, for several years now, also had a branch in Bahrain, where they were able to secure the prestigious VIP catering job for the Bahrain International Circuit – a launch pad for an even greater future in a golfing region which is addicted to luxury. Back home in Germany, Käfer grew big on private customers. Gerd Käfer, Michael’s father, who is today 74 years old, is reckoned to be a pioneer as far as premium party service in Germany is concerned. His name is synonymous with developing and perfecting this particular gastronomic service and, in the 60s, 70s and 80s, he was the preferred party-service organiser of Munich’s smart set: creative, passionate, with a taste for luxury.
 

 
Today the majority of all commissions come from business clients. The commissions number more than 2,000 a year. The average turnover per head amounts to over €100 (including staff/equipment costs). Commissions for automobile brands, from Audi and BMW to Rolls-Royce, but including Toyota, too, are all part of a day’s work. The whole of the sporting sector is proving to be an important developing area. Creativity and innovation are, says Käfer, absolute necessities for a regular place in the top echelons. “Be different from all the others. Always offer something new, something that people are not used to. Keep a step ahead in your thinking – ahead of customers’ ever-increasing expectations. Go for individual solutions.
 

 
Read in the full article about the following countries:
 
Part I - Sweden, The Netherlands and Russia
 
Part II - Austria, France, Spain and Italy
 

 
| 24 April 2007 |